around Elon Musk to the purchase agreement twitter was met with a wave of target price increases in the actions gives company of social media, although investors in Tesla (TSLA) fear that the billionaire is dispersing too much.
Musk, who sold more than $15 billion worth of Tesla shares earlier this year to fund the deal, has threatened to pull out of the deal, citing a large number of fake accounts, making him the target of a lawsuit by Twitter to close the deal. at the original offer price of $44 billion.
While there is no word on another round of potential sales of Musk shares, Wedbush analyst Dan Ives has warned that the Tesla chief executive’s interest in closing the deal will weigh on the company’s stock.
“The big concern is that Musk is juggling too many balls at once,” Ives said. “We see minimal benefits to Musk owning Twitter for Tesla investors going forward.”
Twitter shares, which closed at their highest level since April, were down about 2% on Wednesday, while Tesla’s were down nearly 6%.
At least three analysts raised Twitter’s share price target after it showed renewed interest in buying the company on Tuesday.
Art Hogan, chief market strategist at B. Riley Wealth in Boston, estimated that Musk may need to sell an additional $2 billion worth of stock before Tesla releases its quarterly results, scheduled for Oct. 19.
Follow Money Times on Instagram!
Connect with the market and have access to exclusive content about the news that enrich your day! Seven days a week and 24 hours a day, you will have access to the most important and commented topics of the moment. And even better, multimedia content with images, videos and a lot of interactivity, such as: the summary of the main news of the day in Minuto Money Times, Money Times Responds, in which our journalists answer questions about investments and market trends, lives and much more most… Click here and follow our profile now!
Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
